The dollar continued to gain, while major global indices closed their Monday sessions in negative territory, as following Friday’s strong NFP print, market participants scaled back bets with regards to aggressive easing by the Fed. With today’s agenda being relatively light in terms of economic releases, it is likely that investors will be sitting on the edge of their seats in anticipation of Fed Chair Powell’s testimony before the House of Congress, scheduled for tomorrow. They may get some early monetary policy hints though, as some Fed officials are set to deliver remarks today.
DOLLAR STANDS TALL AFTER NFPS, AHEAD OF POWELL’S TESTIMONY
The dollar continued trading north on Monday and during the Asian morning Tuesday, outperforming all of the other G10 currencies. It gained the most versus AUD, CHF and JPY, while the currencies it outperformed the least were NZD, GBP and EUR.
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Although not crystal clear in the FX world, risk sentiment was subdued yesterday, with major EU and US indices closing in the red. Most Asian indices followed suit today, although Japan’s Nikkei 225 ended its trading fractionally up. China’s Shanghai Composite slid 0.19%, while...